Understanding Public and General Liability Coverage

Almost every business needs a general liability policy, even if it doesn’t open its doors to the public. That’s because this broad form of insurance protects more than just your customers. It also protects their employees while they are at your company visiting and meeting about projects. It protects your employees, too, and often provides important protections against liability for damages due to third-party injury after you have sold goods or provided services. There are some limits to its protection, though, and it doesn’t necessarily meet the needs of companies open to the public.

Adding Public Liability

A public liability insurance policy is an additional form of coverage that many businesses buy in addition to a general liability policy. It doesn’t replace general protections; instead, it extends the available coverage to members of the public who come onto your premises. This is especially important for companies that rely on walk-in traffic because often they need more coverage in this area than in other areas covered by general liability protection. By purchasing this extra insurance instead of increasing the maximum coverage on a general liability policy, you enjoy the protection your business needs without over-purchasing the other coverage general liability provides. The result is a more cost-efficient structure for your company’s risk management plan.